Document Content

DECISION

Approving the general Planning on socio-economic development of Dung Quat economic Zone up to 2015 with a vision toward 2020

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Prime Minister's Decision No. 50/2005/QD-TTg of March 11, 2005, establishing Dung Quat Economic Zone, Quang Ngai province, and promulgating its Operation Regulation;

Based on Report No. 1339/TTr-UB of June 23, 2005, of the People's Committee of Quang Ngai province; Report No. 07/TTr-BQL of June 23, 2005; Document No. 488/BQL of September 20, 2005, and Document No. 694/BQL of November 18, 2005, of the Management Board of Dung Quat Economic Zone;

At the proposal of the Planning and Investment Minister in Official Letter No. 8823-BKH/TD&GSDT of December 21, 2005, on the approval of the general planning on socio-economic development of Dung Quat Economic Zone up to 2015 with a vision toward 2020,

DECIDES:

Article 1.- To approve the general planning on socio-economic development of Dung Quat Economic Zone (Dung Quat EZ) up to 2015 with a vision toward 2020 with the following principal contents:

1. Development viewpoints

a/ The investment in development of Dung Quat EZ should be made in the context of general socio-economic development of Quang Ngai province, Central Vietnam's economic region and the whole country.

b/ The development of Dung Quat EZ aims to expand the market and step by step integrate with the regional countries and the world.

c/ Dung Quat EZ shall be built into a general economic zone with the multi-branch and multi-sector development centered at oil refinery, petrochemical and chemical industries and some spearhead industries with large scale and investment advantages, and efficiently exploiting Dung Quat deep-water port.

d/ The development of Dung Quat EZ should ensure the general efficiency in terms of economy, politics, social affairs, security, defense and environmental protection.

e/ Efforts should be concentrated on building comprehensive, complete and highly sustainable material foundations as well as modern and civilized urban centers. To experimentally apply mechanisms and policies to develop production and business models with advantages and construction investment activities in Dung Quat EZ.

f/ Mechanisms and policies applicable to Dung Quat EZ must be really preferential and greatly incentive to domestic and foreign investment, ensuring long-term stability and creating favorable conditions for investors to develop production and business within the current legal framework, and must be further improved to be compliant with treaties to which Vietnam has signed or acceded and be in line with the trend of international economic integration.

2. Development objectives

a/ General objectives:

- To concentrate on stepping up the investment in development of Dung Quat EZ, attaching special importance to the development of oil refinery, petrochemical and chemical industries and heavy industries, a large-sized deep-water seaport in the direction of multi-branch and multi-sector development.

- To invest in building and developing Dung Quat EZ, together with Chu Lai EZ after 2010, into growth nuclei and industrial-urban-service centers of Central Vietnam's key economic region, which shall be driving forces for the industrialization and modernization of Central Vietnam and the whole country.

- To contribute to the achievement of the socio-economic development objectives of Quang Ngai province up to 2010 and the realization of orientations toward 2020.

b/ Development objectives up to 2015 and a vision toward 2020:

- Branches and domains where development investment is concentrated in Dung Quat:

+ To complete the construction of and put Dung Quat oil refinery into operation by 2009; at the same time, to commence the construction of a number of petrochemical and chemical plants to form an oil refinery - petrochemical and chemical complex on an area of around 600 hectares.

+ To build a number of large-sized heavy industry plants attached to Dung Quat deep-water seaport, such as the seagoing ship building and repair plant, second phase, the steel working and rolling mill, etc., in order to form a shipbuilding complex and a steel working and rolling cluster.

+ To prioritize and attract investment projects on production of consumer goods and processing of export goods in order to generate an annual export value of over USD 200 million on average.

+ To invest in building and exploiting Dung Quat deep-water port in association with industries and port logistic services.

+ To step by step invest in the development and formation of Van Tuong and Doc Soi urban centers.

+ To complete the investment in and exploitation of Thien Dang tourist site; and to invest in further development of Van Tuong eco-tourist site.

+ To promote and attract investment in the development of financial, banking, commercial, telecommunications and port services.

- Further investment in the synchronous development of infrastructure system and public-utility services:

+ Technical infrastructures: To build sand-shielding embankments and breakwaters of Dung Quat port; axial and important traffic routes; the system of fish wharves and embankment of Tra Bong river; the water supply and drainage system of the western industrial park and the eastern industrial park. To step by step invest in the development of Dung Quat deep-water seaport system under the Prime Minister's Decision No. 707/2002/QD-TTg of August 26, 2002.

+ Infrastructures of industrial parks, services, tourism and dwelling houses: Sai Gon-Dung Quat industrial sub-zone, Sai Gon-Quang Ngai industrial sub-zone and the light industry sub-zone, and the electronic industry cluster; Doc Soi urban center and condominiums for civil servants and workers, the urban center north of Van Tuong, the population and expert residence quarters, and the eco-tourist site.

+ Social and environmental infrastructures: To build the cultural and sport center; the international general education school; parks and botanical gardens; the fire prevention and fighting center; the resettlement quarters; the working office of the Management Board of Dung Quat EZ; the agricultural technical assistance center; the solid waste treatment quarter, rainwater drainage and wastewater treatment system; to plant protective forests for eco-environmental protection and creation of conditions for sustainable development.

+ Concentrated development and supply of human resources: To continue building Dung Quat job-training school, expand its scale and raise its training quality.

c/ Development investment objectives in each period:

- In the 2006-2010 period:

+ Investment attraction: The total registered investment capital shall reach over USD 5.5-6.0 billion, of which reimbursed investment capital shall account for 60-70%.

+ The industrial production value shall be more than VND 35,000 billion.

+ The export value shall be over USD 120 million/year.

+ The budget revenues shall reach VND 2,000 billion or more by 2010 (provided that the oil refinery is completed and operates at full capacity before 2010).

+ Jobs shall be created for around 15,000-20,000 laborers.

+ Dung Quat port shall handle around 20 million tons of cargoes.

- In the 2011-2015 period:

+ Investment attraction: The total registered investment capital shall reach over USD 8 billion.

+ The industrial production value shall be more than 1.6 times that of 2010.

+ The export value shall be over USD 300 million/year.

+ Jobs shall be created for around 30,000-40,000 laborers.

+ Dung Quat port shall handle more than 28 million tons of cargoes by 2015.

- Forecasts of development objectives up to 2020:

+ Investment attraction: The total registered investment capital shall reach over USD 10 billion.

+ The industrial production value shall double that of 2010.

+ The export value shall be over USD 400 million/year.

+ Jobs shall be created for more than 50,000 laborers.

+ Dung Quat port shall handle around 34 million tons of cargoes.

3. Orientations for development of branches and domains up to 2015 and a vision toward 2020

a/ Industrial development: To concentrate on developing a number of following key industries:

- Oil refinery, petrochemical and chemical industries:

+ To complete the construction of, and put into operation, Dung Quat oil refinery which can attain an annual capacity of 6.5 million tons of crude oil by 2009; at the same time, to prepare for the expansion of investment in processing of sour oil.

+ To develop petrochemical and chemical industries by investing in a polypropylene plant, a carbon black plant, a plant for production of cleansing substances, a plant for production of liquefied gases, a synthetic polystyrene fiber plant, a caustic soda production plant, a plant for production of base chemicals, a plant for production of rubber tires, a methyl tertiary butyl ether plant, a synthetic fiber plant, an industrial gas production plant, and a petrol and oil general depot, on a total land area of 350-400 hectares with a projected investment capital of around USD 850-1,000 million.

- Mechanical engineering and metallurgy: To form a steel complex to produce steel casts and products; to manufacture automobile parts and assemble automobiles; to manufacture multipurpose petrol engines, diesel engines and gas tanks; to manufacture containers and heavy equipment of all kinds; to develop building industry for building and repairing large-sized ships to form, together with supporting factories, a shipbuilding complex.

- Building material industry: To develop the production of cement and concrete, ceramic and porcelain sanitary ware, roofing sheets and interior furniture of plastics, PVC tubes, steel construction structures and interior decoration articles.

- Light industries and food processing industry: To develop textile and garment, leather and footwear, electric and electronic industries and the processing of agricultural, forestry and aquatic products and wood articles for export, etc.

b/ Development of seaport logistics, commerce, service and tourism:

- To develop seaport services and establish tax suspension areas:

+ To concentrate on development of seaport logistics services, including the system of warehouses and storing yards, dry docks, cargo loading and unloading, combined ocean shipping-seaport services.

+ To develop tax suspension areas with principal activities defined in Article 8, Clause 1 of Article 9, Article 10, Clauses 1, 2, 3, 4, 5, 6, 7 and 8, Article 11 of the Prime Minister's Decision No. 50/2005/QD-TTg of March 11, 2005, establishing Dung Quat Economic Zone, Quang Ngai province, and promulgating its Operation Regulation. It is planned to build Tax Suspension Area I on an area of around 200 hectares attached to Dung Quat seaport and Tax Suspension Area II on an area of around 200 hectares attached to the southern area of Chu Lai airport.

- To develop commerce and service: To build a commercial center in Van Tuong urban center and another one in Doc Soi urban center. To step up the development of general services of various kinds in such domains as finance, banking, insurance, etc.

- To develop tourism:

+ To develop tours between Dung Quat EZ and other areas; to diversify forms of tourism, such as oceanic convalescence tourism, eco-tourism, visiting tours to historical and revolutionary relics.

+ To build entertainment and recreation centers, spots for sightseeing and tourism; to intensify the building of material foundations for tourism. To concentrate on developing Van Tuong tourist site, phase I (up to 2010), on an area of 250 hectares, and Thien Dang-Khe Hai eco-tourist site on an area of 170 hectares.

c/ Development of agriculture, forestry and fishery:

- To develop agriculture for supply of high-quality raw materials, vegetables, fruits and foods to Dung Quat EZ. To invest in reclaiming unused land and creating production land fund; to build the agricultural technical assistance center to provide technical assistance and supply seeds to resettled households and local people.

- To accelerate the planting of protective forests and forests shielding coastal sand.

- To develop fisheries in the direction of using new breeds and applying advanced technologies; to step up the development of freshwater and brackish water aquaculture into a commodity production branch at an appropriate scale. To attach importance to the planning solutions and adopt measures to protect marine resources in the region.

- To facilitate the creation of jobs for, and the improvement of living standards of, local people, especially households resettled in Dung Quat EZ; to step by step expand and develop services in order to contribute to the economic restructuring for local population.

d/ Development of a number of social domains:

- Laborers being technical workers or having higher qualifications shall account for 35-40% of the total labor force of Dung Quat EZ by 2010 and 60-65% by 2015.

- To develop education and training of human resource: To diversify training forms; to step by step establish a number of professional and job-training schools. To expand and upgrade Dung Quat Job-Training School into a college in order to meet local demand for human resource. To adopt preferential policies to attract experts, managerial personnel and skilled technical workers to work in Dung Quat EZ; to permit foreigners to establish an international general education school, etc.

- To concentrate on building a 300-bed hospital (Phase I: 100 beds).

- To continue building and completing a multipurpose cultural and sport center; to encourage and permit all domestic and foreign economic sectors to invest in cultural, sport, entertainment and recreational activities according to the provisions of law. To complete and put into efficient operation Dung Quat Television Station.

- To build social utility works such as the international general education school, the fire prevention and fighting center, the agricultural development assistance center, Van Tuong botanical garden, Van Tuong cultural park and other social and cultural works.

e/ Building and development of population quarters and urban centers:

- Van Tuong urban center: To build Van Tuong urban center into an industrial and service town planned under modern standards. The town shall have a total land area of around 2,400 hectares and consist of the following functional quarters: the residential quarter for experts on 178 hectares, the northern central quarter on 180 hectares, the southern central quarter on 817 hectares, the eco-tourist quarter on 432 hectares, etc. In this town, investment shall be made step by step in urban infrastructures, dwelling houses, and medical, educational, financial and commercial services, etc.

- Doc Soi urban center: To make the detailed planning and step by step build the infrastructure of Doc Soi urban center into a satellite town to the west of Dung Quat EZ, linked with Chau O township (the capital of Binh Son district).

- The system of population quarters: From now to 2010, to organize the investment in and completion of the building of infrastructures of the following five population quarters: The quarter northwest of Van Tuong town, the quarter east of Tra Bong river, the quarter west of Tra Bong river, Doc Soi quarter and Binh Thuan quarter.

- Cemeteries: These cemeteries shall be expanded mainly to the west of National Highway 1 while a new people's cemetery shall be built on a trial basis.

f/ Development of infrastructure system:

- To develop Dung Quat deep-water port:

The system of Dung Quat port consists of an oil and gas port, a general port, a special-use port, a commercial port in service of tax suspension area and an international container entrepot; and other items, including a 1,600 m-long breakwater, a 1,700 m-long sand shielding embankment, the embankments of Cua Dam river and Tra Bong river, the dredged quay and fairways, and port logistic services.

Investment shall be made in building Dung Quat port into one capable of handling around 20 million tons of cargo a year by 2010 and around 34 million tons by 2020.

+ The oil and gas port: The annual volume of cargoes to be handled at this port shall be 6.1 million tons of oil products. To build a floating wharf for pumping crude oil into oil tankers of a tonnage of 80,000-110,000 tons in Viet Thanh bay.

+ The general port shall be divided into two sections: General port section 1 lying right behind the oil and gas port and capable of receiving ships of a tonnage of 5,000-50,000 tons; general port section 2 lying to the south of Dung Quat bay and on the left bank of Dap river.

+ The special-use port: This port shall be attached to the shipbuilding complex, the steel working and rolling plant and heavy industry plants.

+ The commercial port: This port shall serve the tax suspension area and an international container entrepot port, and lie between the special-use port and general port section 2.

- To develop the road and railway network:

+ Roads: From now to 2010, to continue investing in building and completing roads currently invested and already planned roads. To build Dung Quat road linking to Ho Chi Minh road through Tra My - Tra Bong- Binh Long - T-junction of the oil refinery - Dung Quat port, and to plan and build Tri Binh - Dung Quat port road, a road running along Van Tuong coast linking to Dung Quat - Sa Huynh road, and a number of arterial roads of Van Tuong urban center.

- Railways: To build a railway linking Dung Quat port with the North-South railway and Tri Binh cargo station.

- To develop the power supply system:

The power source to be supplied to Dung Quat EZ shall be transmitted from the 500/220 kV national grid from Pleiku (Gia Lai) and Cau Do (Da Nang) to the main 220/110 kV transformer stations. From these stations, 110-kV electricity shall be transmitted to 110-22 kV transformer stations for supply to Dung Quat EZ.

- To develop the water supply and drainage, wastewater and solid waste treatment systems:

+ Water supply: Water source shall be supplied by Dung Quat water plant which shall have a capacity of 15,000 m3/day in the first phase, and be subsequently further invested for expansion and higher capacity so as to satisfy the demand for water for production and daily life and suit the socio-economic development rate of Dung Quat EZ.

To complete the building of Nuoc Trong water reservoir and study the building of more reservoirs on Tra Khuc river in order to add water to Thach Nham and supply water to Dung Quat EZ. To strive for a water supply capacity of 115,000 m3/day, a daily-life water supply norm of 150 liters/person/day and 85% of households supplied with clean water. Water volume supplied for industrial use shall be around 50-60 m3/ha/day.

+ Water drainage, wastewater and solid waste treatment: To build the wastewater drainage system along the northern, eastern and southern arterial roads of the eastern and western industrial parks, the oil refinery and petrochemical quarter and the water drainage system of Van Tuong urban center. To build wastewater treatment stations concentratedly in the eastern and western industrial parks, the oil refinery and petrochemical quarter and Van Tuong urban center. Rainwater shall be separated from daily-life and industrial wastewater for treatment. Production and business investors must treat wastewater up to standard A before discharging it into rivers and sea. The management and treatment of wastewater and solid waste must ensure the standards on environmental hygiene protection.

- To build infrastructures of industrial parks:

To concentrate on completing the investment in building and expanding the technical infrastructure system of Sai Gon-Dung Quat industrial sub-zone from current 118 hectares to 170 hectares; the technical infrastructure of the oil refinery, petrochemical and chemical complex to 600 hectares; the heavy industry sub-zone to 600 hectares; Sai Gon-Quang Ngai industrial sub-zone to 133 hectares; the light industry sub-zone to 200 hectares; and the hi-tech industry cluster to around 100 hectares by 2010.

- To develop the mass transit system with buses, tramway cars, etc.

g/ Environmental protection and technological development

- To plan and build the solid waste and wastewater treatment system for each production establishment and the whole Dung Quat EZ. To complete the building of the environmental observation and supervision center. To invest in planting of protective forests on around 4,000 hectares and creation of beautiful environmental landscapes. To elaborate regulations on and strictly inspect the environmental protection. To build and organize the system of environmental management attached to the national environmental observation system. To enhance the environmental management capability; to supervise and observe the environment in the construction process and in production and business activities.

- To provide supports for enterprises which apply information technology, renew production technologies and efficiently apply international standards. To well protect the industrial property rights. To develop technical services and enhance the state management of product quality registration.

4. Orientations for spatial development

- Land use planning of functional quarters: Industrial parks, port and port-related service areas, tax suspension areas, Van Tuong and Doc Soi urban centers, the tourist-service quarters and administrative quarters.

- Orientations for land use up to 2010 and 2015:

The total land area planned for development of Dung Quat EZ by 2015 shall be around 10,300 hectares. The specific land use plan for the 2006-2015 period shall be as follows:

Land area for use by 2010

Land area for use by 2015

Area (ha)

Percentage

(%)

Area (ha)

Percentage (%)

(1)

(2)

(3)

(4)

(5) = (4/3)

(6)

7 = (6/3)

Total land area

10,300.00

I

Land planned for development investment

9,540.40

6,975.35

73.11

9,312.80

97.61

1

Industrial land

2,287.90

1,873.10

81.87

2,247.00

98.21

2

Urban land

970.70

427.68

44.06

887.60

91.44

3

Tax suspension area and non-tariff area land

480.00

288.00

60.00

480.00

100.00

4

Eco-tourism land

767.00

388.00

50.59

692.00

90.22

5

Land for port construction

212.00

118.27

55.79

212.00

100.00

6

Hill, mountain and coastal land where protective forests can be planted

3,800.00

3,000.00

78.95

3,800.00

100.00

7

Land for development of population quarters

400.60

267.40

66.75

372.00

92.86

8

Land for traffic infrastructures

622.20

612.90

98.51

622.20

100.00

II

Other land categories

759.60

759.60

1

Land for agricultural production

400.00

400.00

2

Land of stable population quarters

220

220

3

Pond, lake and marsh land

139.6

139.6

The Management Board of Dung Quat EZ and the People's Committee of Quang Ngai province shall have to manage and use land according to the provisions of Article 18 of the Prime Minister's Decision No. 50/2005/QD-TTg of March 11, 2005.

5. The list of important works and projects prioritized for investment study in the 2006-2010 period and the 2011-2015 period

(See the enclosed appendix).

6. Investment capital demands and sources in different periods

a/ Investment capital demands: The total investment capital demanded for development of infrastructures of the economic zone in the 2006-2015 is estimated at around VND 17,533 billion.

b/ Investment capital sources include the state budget capital and capital originating from the state budget, capital mobilized from the land fund, capital of enterprises and other lawful capital sources.

Projected capital sources for investment in infrastructures of Dung Quat EZ for the 2006-2015 period:

Unit of calculation: VND billion

Ordinal number

Investment periods

Total

The state budget capital and capital originating from the state budget

Capital of enterprises

1

The 2006 - 2010 period

10,282

4,216

6,067

2

The 2011 - 2015 period

7,250

2,058

5,192

Total

17,533

6,274

11,259

Investment of the state budget capital and capital originating from the state budget in infrastructures of Dung Quat EZ in the 2006-2010 period and the 2011-2015 period:

Unit of calculation: VND billion

Plan on mobilization of different capital sources

State budget capital

ODA capital (USD million » VND billion)

Capital from land fund

Capital from government bonds

Preferential credit capital

1

The 2006 - 2010 period

1,549

62.5 » 988

250

1,012

417

4,216

2

The 2011 - 2015 period

855

10.0 » 158

465

600

2,058

Total

2,384

72.5 » 1,146

715

1,612

417

6,274

7. Major solutions to implement the general planning

a/ Solutions to mobilize investment capital:

- The revenue to be collected in the locality is projected at over VND 2,000 billion by 2010. This capital source shall be allocated by the state budget for investment in development of the economic zone under annual plans. In the first years, to solve the investment capital shortage, the state budget shall make targeted additional allocations or advance capital to satisfy the requirements of investment in the development of infrastructure system and services of Dung Quat EZ.

- To encourage all economic sectors, domestic and foreign enterprises to invest capital in the economic zone in a number of domains specified by Vietnamese law and international treaties which Vietnam has signed.

- To mobilize all capital sources, such as Government bonds, project bonds, ODA capital, preferential credit capital, land fund capital, etc., for investment in building and completing synchronous infrastructures and utilities of the economic zone in a fast and efficient manner.

b/ Solutions to perfect development mechanisms and policies:

- In the immediate future, efforts should be concentrated on institutionalizing preferential mechanisms and policies applicable to the economic zone, defined in the Prime Minister's Decision No. 50/2005/QD-TTg of March 11, 2005, and Decision No. 72/2005/QD-TTg of April 5, 2005, through circulars of ministries and central branches and documents of the People's Committee of Quang Ngai province, guiding and decentralizing responsibilities for or authorizing the realization of such mechanisms and policies.

- The Management Board of Dung Quat EZ shall study, formulate and submit to competent agencies for decision a number of experimental mechanisms and policies suitable to the development requirements of Dung Quat EZ in each period, especially those on management of investment in development of Dung Quat port system, and projects requiring the application of particularly preferential policies, mechanisms and policies to attract talents and mobilize resources for the development of the economic zone.

- To permit investors to build special-use ports attached to investment projects on heavy industries with 100 % foreign capital for achieving such projects' objectives. For the building of special-use ports, foreign investors must comply with the order, procedures and conditions prescribed by the Vietnamese law.

- To formulate mechanisms and policies on providing preferences and supports in dwelling houses for experts and laborers working in Dung Quat EZ.

Article 2.- The approved general planning shall serve as a basis for the adjustment, elaboration, submission for approval and organization of implementation of specialized plannings (construction planning; land use planning and plans and other specialized plannings) and investment projects in Dung Quat EZ according to regulations.

The Management Board of Dung Quat EZ shall base itself on the development objectives, tasks and orientations of Dung Quat EZ stated in the report on the approved general planning to assume the prime responsibility for, and coordinate with the People's Committee of Quang Ngai province and relevant ministries and branches in, directing the formulation, submission for approval and organization of implementation the following plannings according to regulations:

a/ The general construction planning, detailed plannings of functional quarters; planning on development of branches and domains to ensure the general and comprehensive development of Dung Quat EZ. For 2006 and 2007, the following plannings should be finalized:

- To review, adjust and supplement the general construction planning on Dung Quat EZ; and to adjust the detailed planning on the eastern and western industrial parks and Doc Soi urban center within a land area of around 10,300 hectares, ensuring its compliance with the Prime Minister's Decision No. 50/2005/QD-TTg of March 11, 2005.

- To select foreign consultants to take part in the adjustment and finalization of the detailed planning on the tax suspension area, the logistic service area of Dung Quat port, Van Tuong urban center and tourist site.

- To organize the elaboration of plannings on development of agriculture, forestry, fishery, services and commerce; planning on labor, labor training and employment.

b/ The operation regulation of the tax suspension area shall be elaborated and submitted to competent authorities for approval.

c/ Development investment works and projects in Dung Quat EZ.

Article 3.- To assign concerned ministries and branches and the People's Committee of Quang Ngai province to coordinate with, and assist the Management Board of Dung Quat EZ, in performing the following jobs: study, elaboration, adjustment and supplementation of the above-said plannings; study, formulation and submission to competent agencies for promulgation a number of experimental mechanisms and policies, and adjust and supplement them to satisfy Dung Quat EZ development requirements in each period in order to ensure the fulfillment and realization of the development objectives, tasks and orientations of Dung Quat EZ as stated in the general planning report and this Decision.

To accelerate the investment and construction of works and projects of regional scale and nature and important to the development of Dung Quat EZ, which have been decided for investment. To study and consider the adjustment and supplementation of branch development plannings and relevant plans on investment in works and projects in Dung Quat EZ as well as their impacts on the development of Dung Quat EZ, Quang Ngai province, and Central Vietnam's key economic region.

Article 4.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 5.- Ministers, heads of ministerial-level agencies, heads of Government-attached agencies, the president of the People's Committee of Quang Ngai province and the head of the Management Board of Dung Quat EZ shall have to implement this Decision.